Kiddie Academy Franchise FDD, Profits & Costs (2025)

Kiddie Academy, founded in 1981, is a leader in educational childcare, headquartered in Abingdon, Maryland. This franchise started in 1992 and has since expanded significantly across the United States and Washington, D.C.
Kiddie Academy stands out in the competitive childcare market by offering a curriculum that emphasizes comprehensive child development, incorporating elements of technology, health, fitness, character, and academics into daily learning activities.
The franchise offers a unique business model that not only aims to educate children but also provides franchisees with substantial support to ensure their success.
Initial Investment
How much does it cost to start a Kiddie Academy franchise? It costs on average between $405,000 – $7,255,000 to start a Kiddie Academy franchised school.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property. Kiddie Academy offers 2 types of franchises:
Kiddie Academy® Franchise Option | Initial Investment Range |
---|---|
Kiddie Academy® Franchise ( if leasing the facility) | $405,000 – $1,055,000 |
Kiddie Academy® Franchise ( if purchasing the facility) | $4,415,000 – $7,255,000 |
We are summarizing below the main costs associated with opening a Kiddie Academy® Franchise ( if purchasing the facility). For more information on costs required to start a Kiddie Academy franchise, refer to the Franchise Disclosure Document (Item 7).
Type of Expenditure | Amount (for a Purchased Facility) |
---|---|
Total Initial Fee | $65,000 – $145,000 |
Real Estate Acquisition, Construction Costs, and Construction | $3,785,000 – $5,730,000 |
Professional Fees, Loan Fees and Soft Costs | $205,000 – $500,000 |
Kitchen Equipment and Supplies | $20,000 – $40,000 |
Supplies/Equipment for Inside of Academy, Playground, and Online Training Component | $95,000 – $225,000 |
Outdoor Fixed Playground Equipment | $100,000 – $255,000 |
Computer Hardware and Software and Classroom Technology | $25,000 – $65,000 |
Office and Lobby Furniture, Office Equipment and Supplies, and Telephone System | $10,000 – $30,000 |
Indoor and Outdoor Signage | $20,000 – $40,000 |
Travel and Living Expenses while training and Plan Review | $3,000 – $5,000 |
Transportation Vehicles and Equipment | $0 – $5,000 |
Insurance and Utility Deposits | $4,000 – $10,000 |
Business Licenses | $3,000 – $5,000 |
Start-Up Marketing and Advertising Expenses | $35,000 |
Additional Funds/Working Capital – 3 months after opening | $45,000 – $165,000 |
Total | $4,415,000 – $7,255,000 |
Average Revenue (AUV)
How much revenue can you make with a Kiddie Academy franchise? A Kiddie Academy franchised school makes on average $1,984,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,774,000 yearly revenue for similar preschool franchises. Below are 10 Kiddie Academy competitors as a comparison:
Kiddie Academy Franchise Disclosure Document
Frequently Asked Questions
How many Kiddie Academy locations are there?
As of the latest data, Kiddie Academy has over 330 franchised locations across 39 states and Washington, D.C. The company focuses exclusively on franchising and does not operate any company-owned locations. Expansion continues with plans to open 30+ new locations annually.
What is the total investment required to open a Kiddie Academy franchise?
The total investment required to open a Kiddie Academy franchise ranges from $405,000 to $7,255,000.
What are the ongoing fees for a Kiddie Academy franchise?
For a Kiddie Academy franchise, the ongoing fees include a royalty fee of 7% of gross revenues. Additionally, franchisees are required to contribute 2% of gross revenues towards marketing fees.
These fees cover the support and ongoing operations provided by the franchisor, including marketing, training, and system-wide initiatives to help promote the brand and drive enrollment at individual franchise locations.
What are the financial requirements to become a Kiddie Academy franchisee?
To become a Kiddie Academy franchisee, applicants must meet certain financial requirements. This includes having a minimum net worth of $750,000, with at least $250,000 in liquid capital.
These financial benchmarks ensure that prospective franchisees have the necessary resources to cover initial investments, operational expenses, and any unforeseen costs that may arise during the setup and early stages of the business.
How much can a Kiddie Academy franchise owner expect to earn?
The average gross sales for a Kiddie Academy franchise are approximately $1.98 million per location. Assuming a 15% operating profit margin, $1.98 million yearly revenue can result in $145,500 EBITDA annually.
Who owns Kiddie Academy?
Kiddie Academy is owned by Essential Brands, Inc., a private company based in Maryland. The company was founded by George and Pauline Miller in 1981, with the first Kiddie Academy location opening in Baltimore County, Maryland.
Disclaimer
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